DSIJ Mindshare

On the Capex front, the board has recently approved the setting up of an additional facility to produce 100,000 MTPA of Chloromethane in Dahej (Gujarat) at a projected cost of Rs 315 crore. This project would enhance the company’s industrial chemical portfolio and is likely to commence by January 2022.

The resumption of construction activities and the adoption of digital technologies would strengthen the demand for steel and make the Indian steel sector globally competitive.

On the debt front, the company’s net debt stands at Rs 70.1 crore as of September 2020 as against Rs 127.9 crore in March 2020 and Rs 217.8 crore in September 2019.

On the economic growth front, RBI said that the real gross domestic product (GDP) growth in 2020-21 is expected to be negative at (-) 9.5 per cent, with risks tilted to the downside: (-) 9.8 per cent in Q2FY21; (-) 5.6 per cent in Q3; and 0.5 per cent in Q4.

Indian yarn players have high export dependence on China (FY16 to FY19: around 30 per cent), which reduced to around 20 per cent for the three months ended June on account of lower demand and growing competition from Vietnam & Pakistan.